Fixing government-union relations

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Next year will be a year of public sector labour unrest. So says the Conference Board of Canada's recently released 2012 Industrial Relations Outlook, which portrays a grim outlook for public sector bargaining as a result of governments' efforts to reduce staff and compensation.

In the private sector, however, the Conference Board says the poor economy has forced unions to adopt a realistic view of their prospects. "The City of Windsor, with a reputation as a militant union town, today boasts a two-year strike free record in the private sector. During this time, more than 100 Canadian Auto Workers contracts have been negotiated and ratified," the report notes.

Unions have far less bargaining power in the private sector, where only 16 per cent are unionized, compared with more than 70 per cent of public sector employees. But, in the public sector too, management is in the drivers' seat legally and practically, as long as it plays it correctly.

Here is my prescription for government:

Eliminate collective agreement excesses where wages, benefits and hours of work exceed their private sector equivalents as well as inflexibilities in the language of the collective agreements. In the City of Toronto, for example, employees cannot be laid off as result of contracting out services. Employees who are laid off and bumped downward have their salaries protected for 30 months and receive a sick bank payout at departure. In some areas, contractors must be paid close to union wages, limiting the advantages of going this route. In other areas, such as Exhibition Place, there is an agreement contractors must hire unionized employees under the applicable collective agreement. This makes doing business with the city unaffordable, further eroding its tax base.

This is the year to change sucha greements — municipally, provincially and federally.

Do not let them strike on their own timetable. Announce publicly, if the union does not make the requisite compromises, its members can strike or be locked out. Imagine if the city were to lock out its workers in winter when garbage and other inconveniences are less malodorous.

Make clear from the outset a strike or lockout will be long-lasting. Many employers erroniously state that a strike would be short, playing into the unions' hands. If employees believe they need only take a short strike, they will likely vote in favour of one. If they see themselves unemployed for months, few will support militant action. As well, it takes a long strike for an employer to recoup the costs of strike preparation.

Make it clear they will be replaced by trained replacement workers and contractors immediately. Their replacements should be openly trained early in negotiations to make the threat credible. (This has the added benefit of using tax dollars to provide work and skill training for the unemployed). That would make the union reluctant to strike and more likely to make the requisite compromises.

Governments must cogently explain their case to the media and public. Canadians are fed up with paying public servants $19,000,000,000 more a year than they earn themselves for performing the same jobs. The public is prepared to accept short-term personal inconveniences to rectify that imbalance and reduce their taxes. If politicians stay focused on making that case to the public, their long-term popularity would be guaranteed.

Obtain injunctions early and often. It is illegal for unions to restrict other employees from going to work or citizens from attending to their business. They can only stop cars or citizens long enough to hand them a leaflet. If they try to stop anyone for longer, the employer should immediately obtain an injunction.

Government needs lawyers who are their partners. Historically, negotiations in the public sector have been run by managers and law firms who view unions as partners in the labour relations process. That has led to cushy, inefficient collective agreements, excessive wages and benefits , ridiculous perquisites and co-management in the workplace. It has also led to the more than 70 per cent public sector unionization. Governments should start using different lawyers who the unions know will not ultimately capitulate but will successfully run a strike.

— Howard Levitt is senior partner of Levitt LLP, (levittllp.ca) employment and labour lawyers. He practises employment law in eight provinces and is author of The Law of Hiring in Canada, soon to be released.

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